The Following Data Relates to Lead Company's Estimated Amounts for Next

question 171

Multiple Choice

The following data relates to Lead Company's estimated amounts for next year. $$\begin{array} { l c c } \text { Estimated: } & \text { Department 1 } & \text { Department } 2 \\\text { Marufacturing overhead costs } & \$ 1,200,000 & \$ 3,400,000 \\\text { Direct labor hours } & 560,000 \mathrm { DLH } & 780,000 \mathrm { DLH } \\\text { Machine hours } & 91,000 \mathrm { MH } & 23,000 \mathrm { MH }\end{array}$$ What is the company's plantwide overhead rate if direct labor hours are the allocation base?
(Round to two decimal places)

• A)$3.43 per direct labor hour.
• B)$2.14 per direct labor hour.
• C)$4.36 per direct labor hour.
• D)$.29 per direct labor hour.
• E)$.47 per direct labor hour.

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Definitions:

Overconfidence

The state of being excessively confident, often leading to underestimating risks, challenges, or the abilities of others.

Too Much Time

Too much time typically refers to scenarios where there is an excess of available time which could lead to inefficiency or procrastination.

General Decision-making Model

A step-by-step approach to making decisions that typically starts with identifying a problem, generating alternative solutions, evaluating the alternatives, and then selecting and implementing the best solution.

Routine Decision

A routine decision involves regularly made choices that follow established procedures or rules, often requiring minimal thought or deliberation.